FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22345, 8 March 1938, Page 15

FINANCE AND COMMERCE

WOOL AGAIN IMPROVES EWE PRICES FIRMER There was an improvement of up to a halfpenny a pound ,n the pnce of wool at the Timaru sale yesterday, compared with values at Chnstchurch on Thursday. Halfbreds and fine threo-quarterbreds were a halfpenny better, crossbreds were a larthmg up and merinos, of which there was a large offering were steady though they were not keenly sought. The feature of the sale was the strength of the competition from Bradford, which bought more freely and animatedly than at any sale this season. France and Germany also competed strongly There was some buying on behalf of Japan and local mills. The catalogue of 23,075 bales was almost completely cleared. J Prices of young ewes reached their highest level for this season at the Little River ewe fair yesterday. There was a large yarding but the recent tendency among farmers to buy stronger-woolled sheep kept prices steady at a high level Ton price, 41s was the best of the season, and a number of sales were made about that figure.

vertising sells them is that thev offer certain qualities which appeal to buyers. One of the more homely of these, absence of tickle, is among the subjects of current wool research. Many women, and—so it is said —some men object to wearing wool next their skin because it tickles. Artificial silk does not tickle. Perhaps wool need not; and if it could be spun and woven in such a way that its tickling qualities were removed, one of its apparent disadvantages in comDetition would disappear. Others are no doubt equally capable of removal: and at the same time science may be expected to reveal in wool new positive qualities that are beyond the capacity of its rivals.

Grower-Manufacturer Co-operation For the fullest development of the case for wool, the closest co-operation will be necessary all along the line of its preparation. It is highly pleasing, therefore, to learn from tho International Wool Secretariat that "never before has there been a closer and more cordial liaison between producer and manufacturer. Oi so clear an appreciation of their common interests in all sections of the industry." The secretariat consists of representatives from Australia. New Zealand, and South Africa, the world's three leading wool export countries, and also—v.hich is a vital point—the three which look principally to the United Kingdom as buyer of thei 1 - clip. To take the case of our own Dominion only, a glance at the statistics of staple fibre production is enough to show the urgent necessity of growers and wool manufacturers working in harmony To manufacturers themselves it may not matter greatly whether they use all wool or wool and fibre mixtures, especially as their existing wool-manu-facturing machinery will handle fibre: their livelihood would not be prejudiced bv the change. Woolgrowers. on the other hand, would be hit immediately, and in the long run might be ruined. Hapoily it is not too late to build nn defences against such a possibility English and Scottish mills are stil' uc'ncr wool almost exclusively, will be only too gad to go on using it as long as the demand for the product continues. Moreover, it is in their interests, as well as in the interests of growers, to stimulate the demand for wool by presenting its products in increasingly attractive form. Demand and Purchasing Power '■ The mistake is sometimes made of charging against competing fabrics the inroads made upon wool by the depression. The prices of butter and meat fell not because peonle were preferring substitutes, but because purchasing nower was restricted. So in part with wool. World demand for all textiles fell aw?v, and has not yet fully recovered. Here is a comparison of consumption per caput (of all textile^ - ) between the triennial period immediately preceding the onset of ,th- slump and the latest period for which figures are available: — GerPeriod U.K. U.S.A. France, many. Italy lb. lb. lb. lb. lb 1925-27 16.5 31.4 19.1 18,1 11.3 1934-36 21.9 26.5 15.8 16.5 9.1 Only in the Unitrd Kingdom has consumption increased. Furthermore—and this is a fact not generally realised—wool has in every case held its own and in most countries increased its share of the total textile consumption. Comparative percentages for the same two periods are:—

Cotton, rather than wool, has felt the AmT :tition of rayon: in girding itself to met the, advance of staple fibre, wool ought to be able to learn from cotton's mistakes. MINING WAIPAPA BEACH ANNUAL REPORT [THE PRESS Special Service.! DUNEDIN, March 7. For the year ended on September 30 the accounts of the Waipapa Beach Gold Dredging Company show a profit of £llsO lis lid, states the third annual report of the company. "It is to be regretted that the report circulated to shareholders on September 10, 1937, proved only too accurate, the payable ground being worked out by November 6," the report states. "The company's main asset is the dredge, which is in first-class order but the present time can hardly be deemed opportune for the sale ot a dredge. "The directors recommend, therefore, that the company should secure if possible, an area suited to the dredge which would thus create a market at a fair price. An area is under consideration at present, although exhaustive investigation requires to be made to check its gold content." GOLDFIELDS DREDGING (PaSS? ASSOCIATION TBLSGBAM.) TIMARU, March 7. The Goldfields Dredging return is 350z Bdwt for 126 hours. MATAKI U-BBSS ASSOCIATION TELEGRAM.) AUCKLAND, March 7. The Mataki return for the week ended March 6, was 370z for 122 hours work and 8200 yards. OKARITO The Okarito wash-up is 41oz 6dwt for 101 hours.

A CHALLENGE TO WOOL

Artificial Fibres Increase GROWTH IN DICTATOR COUNTRIES 'SPECIALLY WRITTEN FOR THE PR838.) (By J. H. HALL.) LONDON, February 12. The greatly increased world production of staple fibre, and its possible bearing on the future of the wool industry, has been brought before the city this week by a news item and a letter in the "Financial Times." Since 1935 there has been an increase in the aggregate world output of rayon and staple fibre of 64 per cent. Production of rayon* last year is estimated to have been 1,137,575,000 pounds, compared with 997,206.000 pounds in 1936, and 921,249,000 pounds in 1935. The principal producing countries last year were:— Lb. Japan .. .. 330,000,000 U S.A .. 312,000,000 Great Britain .. 119,000,000 Germany .. 110,000,000 Italy .. 104,300,000 World production of staple fibre for 1937 is estimated to have been 604,125,000 pounds, compared with 304,400,000 pounds in 1936, and 140,700,000 pounds in 1935. The principal producers last year were: Germany with 200,000,0001b, Japan with 174,000,0001b, and Italy with 157,000,000 lb. The Italian figure includes both wood-base fibre and lanital, ihe casein derivative. Britain, the United States, France, Poland, Holland, and Sweden, in that order, also produce, but so far in almost negligible quantities. The United States, for instance, although normally in the vanguard of industrial progress, and very favourably placed for wood-pulp supplies, manufactured last year only 20,000,000 pounds of staple fibre. This economic contrast between the democratic and dictatorship political groups lends points to the arguments of the International Wool Secretariat advanced in a letter to the "Financial Times" yesterday. "It is true," says the letter, "that economic and political considerations have led to the adulteration of wool on a large scale in su -h important wool manufacturing countries as Germany. Italy, and Japan; and that technical and scientific skill have made such replacement with artificial substitutes much less of a sacrifice than might have been anticipated. On ihe other hand, these countries admit fairly freely that it is force majeure, for the most part in the shape of exchange and other financial difficulties, which has led them to reduce wool consumption. All maintain that they are only too anxious to utilise greater quantities of wool as soon as the necessary financial requirements can be met. This fact is appreciated by the -producing countries, and already as a result of such trade treaties as those between Germany and South Africa and New Zealand steps are being taken which will at least minimise, if not entirely overcome, the tendency towards any further reduction in demand." Meeting the Challenge

One can acknowledge the logic of this argument, however, and yet at the same time doubt whether the most piously-expressed intentions of returning to wool will avail anything unless wool can carry the war into its enemies' camps, and convince the manufacturing countries of its greater merits. The International Secretariat is on much sounder ground , when it proceeds to anticipate this objection: "There is one salutary lesson for the wool industry in the rise of these new industries, and that is the necessity for appreciating that what scientific research has done for these competing interests it can be enlisted to do for wool. In the past there has been perhaps too great complacence on the part of wool producer and manufacturer alike in regard to the future of wool, of the pre-eminence of which they have been, and still are, rightly convinced. Now both in the Domm- ' ions and this country, there is rapidly being built up a co-ordinated scienti- ' flc organisation which will enable attack to be made on all those problems of production or utilisation of wool which affect its competitive power. It is, perhaps, not rash to anticipate that, given no less industry and skill, we may achieve, in relation to a fibre inherently superior, 'esults no less striking than have been effected in relation to wood or other artificial substitutes. Indeed, substantial results of such research have already been at- . tained." :'-, It is not possible to make even a \ reasonably near estimate of the amount of monev which has been spent, first to perfect wool's competitors, and then to,sell them to the consuming public: DM one is fairlv safe in saying that it half, or nossibly a quarter, as much Wd been spent in establishing the scientific suoeriority of wool, and then in telling the public what it would tips if it neglected to buy wool, substitutes would not have made the headway they have in countries oi free economy. Leadership in rayon ' manufacture, it will have been noticed, is not a prerogative of the dictator countries: the United States is the second largest maker, and Great Britain the third largest. Rayon has JlOt been a forced substitute; its process has been the result of popular whoice. but only after millions of Pounds had been spent in research and delicate processes of manufacture with the object of giving the public a product it would prefer to wool. Popular choice occasionally is swayed oy trivial and slightly comical considerations; but in the main it knows What it wants, and the suggestion that yool substitutes have been enthroned oy skilful advertising alone will not hold water. Thoy are advertised, widely and wisely; but the reason ad-

ALL MARKETS DULL

Outlook Not Thought Gloomy UPTURN IN PRICES EXPECTED IOXtTED PRESS 4SSOfIATIO»—COPVRIC.HT.) LONDON, March G. The Stock Exchange might as well be closed, so little business is passing. Day after day brokers are saying: "This is the quietest day we remember," yet each succeeding day is duller and drearier than the last. The defence , estimates, bringing a throat of additional indirect taxation, gave the bears in gilt-edged issues a chance to play, while they did nothing to stimulate iron and steel and aircraft shares, which in more normal times would have benefited from the promise of such vast expenditure. JLonff-Term Investment Well-informed circles, however, take by no means a gloomy view. It is significant that conservative investment services are now advising subscribers to re-enter the market and to make cautious long-term purchases. The Midland Bank Review bluntly asks the only question in which business people at present are interested. "Is it a slump?" The review notes that unemployment has risen in four months by half a million, a larger increase than in any corresponding period for 10 years. The bank sums up the position: "Considering all factors, it would be doubtful to say at the least whether we have entered a heavy cumulative slump. Hopeful opinion would be mat the effect of the downward turn has spent its force, and that rather more buoyant conditions may be expected in the course of the year." Butter Hardens Commodity traders say the week has hpen one of the quietest for years. Butter, however, is definitely firmer, and activity more brisk. Arrivals kept moving well. Tooley street merchants anticipate a further small appreciation There has been further Canadian inquirv for New Zealand and Australian butter, but as direct shipments from the Dominions are shortly arriving in Canada, a continuance of the inquiry is not anticipated. FOREIGN EXCHANGES BANK OF NEW SOUTH WALES

CLUTHA RIVER (PBZSS ASSOCIATION TELEGBAM.) DUNEDIN, March 7. For the week ended March 4, the Clutha river dredge worked 83 hours and recovered 94 ounces of gold. The loss of time was caused by the shifting of the dredge to the position it occupied early in January. BLACKWATER MINES CPEKS9 ASSOCIATION TW.KOBAJIJ REEFTON, March 7. The Blackwater Mines return for February is:—Crushed 2921 tons, yielding 1169 fine ounces gold, value (at £6 19s 6d a fine ounce). £8155. Working expenses were £6405, leaving a working profit of £1750. Capital expenditure was £2890, and development expenses £502.

Staple Cotton. Wool. Rayon. fibre. U.S.A. .. 91 7 2 0 in 1925-27 86 7 7 0 in 1934-38 U.K. .. 82 15 3 0 in 1925-27 72 18 9 1 in 1934-36 France .. 80 19 1 0 in 1925-27 73 20 6 1 in 1934-36 Germanv 82 15 3 0 in 1925-27 fi9 16 10 5 in 1934-36 Italy .. 84 14 2 0 in 1925-27 59 20 10 11 in 1934-33

The Bank of Nex the following cxcha v South Wales quoted nge rates yesterday:— Buying. Selling. N.Z. on London — £N.Z. to £100 Stg. T.T. 124 O.D. 123/10/124/10/- - 124/3/9 Australia — £A. to £100 N.Z. T.T. 101 O.D. 101 100/10/Fiji— £F. to £100 N.Z. T.T. 90/7/6 O.D 90/7/6 89 89 New Vork— Dol. to £1 N.Z. T.T. 4.0528 O.D. 4.0628 4.0181 4.0221 Montreal— Dol. to £1 N.Z. T.T. 4.C524 O.D. 4.0644 4.0200 4.0240 Austria — Schgs. to £1 N.Z. T.T. — O.D. — 21.03 21.04 Belgium— Belgas to £1 N.Z. T.T. 23.963 O.D. 24.038 23.653 23.664 Czechoslovakia — Korunas to £1 N.Z. T.T. — O.D. — 113.77 113.82 Denmark — Kroner to £1 N.Z. T.T. 18.203 O.D. 13.263 17.893 17.899 Finland — Marks to £1 N.Z. T.T. 184.95 O.D. 185.35 179.15 179.25 France — Francs to £1 N.Z. T.T. 125.16 O.D. — 122.66 122.70 Germany— Reichmarks to £1 N.Z. T.T. — O.D. — 9.890 9.895 Greece — Drachmae to £1 N.Z. T.T. — O.D. — 429.54 429.84 HollandFlorins to £1 N.Z. T.T. 7.307 O.D. 7.347 7.157 7.161 ItalyLire to £1 N.Z. T.T. — O.D. — 76.40 76.45 Java— Florins to £1 N.Z. T.T. 7.279 O.D. 7.319 7.129 7.133 Norway— Kroner to £1 N.Z. T.T. 16.182 O.D. 16.242 15.892 15.898 Noumea — Francs to £1 N.Z. T.T. 126.41 O.D. — 121.41 121.45 Papeete— Francs to £1 N.Z. T.T. 126.26 O.D. — 121.46 121.50 Sweden — Kronor to £1 N.Z. T.T. 15.805 O.D. 15.865 15.510 15.516 SwitzerlandFrancs to £1 N.Z. T.T. 17.538 O.D. 17.643 17.268 17.273 Chefoo — N.Z. pence to dol. T.T. — O.D. — m 18 7-64 Hong Kong— N.Z. pence to dol. T.T. 18 29-64 O.D. 18 27-64 18 53-64 18 53-64 India and Ceylon— N.Z. pence to rup. T.T. 221 O.D. 22 11-32 22 21-32 22 21-32 Japan — N.Z. pence to yen T.T. — O.D. — 17 31-64 17 31-64 Manila — N.Z. pence to peso T.T. 29 5-16 O.D. 29 7-32 29 13-16 29 13-16 Shanghai— N.Z. pence to dol. T.T. — O.D. — -18 9-64 18 9-64 Singapore— N.Z. pence to dol. T.T. 34 41-64 O.D. 34 35-64 35J 35J ASSOCIATED 1 BANKS' DOLLAR ' RATES The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates yesterday on a New Zealand currency oasis. They are subject to alteration without notice:— U.S.A. Canada. (Per £1 N.Z.) Dol. Dol. Selling— T.T. O.D . 4.02 . 4.02 7-16 4.02 1-16 4.02J Buying — T.T. O.D , 4.05 5-16 , 4.06 5-16 4.05i 4.06J